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Old 05-20-2016, 12:52 PM   #2477
calf
broke the first rule
 
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Quote:
Originally Posted by Fuzz View Post
I wonder if the OWA, in the future, could become a creditor such that the cleanup costs are listed as a loan to any company that dills in Alberta, so they become a creditor able to recoup at least some costs. Company balance sheets would have to reflect this as a liability, but I don't think that is unreasonable. Any chance that would work? Note that I know nothing about bankruptcies or accounting.
Companies (at least public ones/those that follow good accounting practices) do have a liability set up on their books to show what they'll have to pay down the road. The problem being, as we're seeing here, is while there is a legal obligation, others are at the front of the line. And typically the reclamation activities are way down the road, companies can be short sighted and not have the cash set aside to pay for it.
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